Question

Offenbach & Son has just made its sales forecasts and its marketing department estimates that the company will sell 228,600 units during the coming year. In the past, management has maintained inventories of finished goods at approximately one month’s sales. The inventory at the start of the budget period is 15,300 units. Sales occur evenly throughout the year.

Required:

Estimate the production level required for the coming year to meet these objectives.

Answer 1

solutions Given data, Estimated sales 228600 Begginning inventory of finished goods. Offenbach Ee Son poroduction pooduction budget for coming year. particulare . Units 228600 Add! Estimated Sales Desired ending inventory of finished goods 298600 units (22860w units) 19050 12 months 2u7650 . Total units required less's Reginning inventory of finished goods Required. production in unikt 15300 232350.